Answer:
A
Explanation:
Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
average rate of return = average net income / average cost of investment
average net income = (total net income - depreciation) / useful life
(8,500,000 - $4,250,000) / 20 = 212,500
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
($4,250,000 - 0) / 2 = 2,125,000
ARR = 212,500 / 2125,000 = 0.1 = 10%
Answer:
<u>Retail Strategy</u>
Explanation:
A retail strategy refers to a future course of action, adopted by a retailer, with respect to the kind of goods and services that would be provided, the pricing strategy i.e deciding upon the price to be charged, the ways to withstand and overcome competition and to keep customers satisfied and maximize profits at the same time.
This activity would also take into consideration, how the products would be displayed and promotion.
In the given case, The salon owner while developing strategy, decided upon gaining a competitive edge over the other salon operators by providing similar services at a reduced price, with employment of well trained staff, and offering heavy discounts on specific services on Wednesdays.
This represents development of a retail strategy.
Answer:
The correct option is option D which is When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.
Explanation:
For the fixed basket, the price is 2006 is given as
Basket Price =$3*10+$5*6=$30+$30=$60
Now the price of basket in 2007 is given as
Basket Price=$5.40*10+$6*6=$54+$36=$90
Now as the inflation rate is given as
Price in 2007/Price in 2006=$90/$60=1.5
this indicates that the prices have become 1.5 times or have increase 50% Thus the inflation rate is 50%
Answer:
The answer is: B) Price ceilings generate shortages. Consequently, the consumers who obtain the product at a lower price win, but other consumers will lose because they would like to purchase the product but are unable to because of a shortage.
Explanation:
A price ceiling generates shortage because it doesn´t allow an equilibrium point to be reached where demand will equal supply. As the price is artificially set down, there is more demand for the product than what is supplied. That is the result of suppliers not willing or being able to supply enough product due to its low price.
Answer:
The answer is $70,000.
Explanation:
The answer for requirement 1 is $480000.
The answer of requirement 2 : Raw materials = $40,000
Raw material purchased = $510000
Total raw material available = $550000
Less : raw material = $480000
Raw material , ending balance = $70000.
